THE Central Bank of Kenya is setting up a Kenya Deposit Insurance Corporation. This is long overdue as it will protect the deposits of Kenya savers. In the past, banks like Trade Bank and Trust Bank went down, taking their customer deposits with them. It is disastrous if the public lose confidence in the banking sector. The disaster is being played out in slow motion in Cyprus where last Saturday the government agreed to seize 6.75 per cent of all bank deposits in exchange for a $10 billion EU bailout. There was an immediate panic and the prospect of a run on the banks...
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